End of the price gouging
The standard excuse for why Australians pay far higher prices than Americans for clothes, consumer goods and cars is to highlight the high transport costs associated with the tyranny of distance. So what is their excuse for more expensive music and software downloads? Dearer data costs due to longer cables? You might assume that because Australia has a free-trade agreement with the United States that Australian consumers and American retailers could trade freely, but you would be wrong. Just try paying the US price for a song on iTunes or a ring at Tiffany’s. Many American retailers make Australians pay a premium price. They have engineered their US websites to prevent customers with Australian credit card numbers or Australian delivery addresses from purchasing from their sites. Such shoppers are redirected to the Australian website where they may pay up to 50 per cent more. Last week the Minister for Communications, Stephen Conroy, announced that an inquiry would be held into the significant price differences for software and music downloads between Australia and the US. An inquiry into software price differences isn’t a bad place to start, but any political party that is serious about free markets and the cost of living should go further than iTunes.
Related documents
Between the Lines Newsletter
The biggest stories and the best analysis from the team at the Australia Institute, delivered to your inbox every fortnight.
You might also like
Funny business: Why you’re paying the price for corporate greed
Australians are paying prices that are too high, too often.
Who knew Queensland’s richest man is a foreign investor?
Clive Palmer’s controversial legal strategies challenge Australia’s trade agreements and environmental laws, and have profound implications for global climate action, writes Stephen Long.
National Press Club Address – Yanis Varoufakis
Yanis Varoufakis addressed the National Press Club in Canberra on Wednesday 13 March, 2024.